Payment of Wages Act, 1936 — section 7

7. Deductions which may be made from wages..—(1) Notwithstanding the provisions of sub-section (2) of section 47 of the Railways Act, 1890 (IX of 1890), the wages of an employed person shall be paid to him without deductions of any kind except those authorised by or under this Act. Explanation.— Every payment made by the employed person to the employer or his agent shall, for the purposes of this Act, be deemed to be a deduction from wages.

(2)Deductions from the wages of an employed person shall be made only in accordance with the provisions of this Act, and may be of the following kinds only, namely : 1 Subs. by A.O., 1937, for “G. G in C.”.

(a)fines ;

(b)deductions for absence from duty ;

(c)deductions for damage to or loss of goods expressly entrusted to the employed person for custody, or for loss of money for which he is required to account, where such damage or loss is directly attributable to his neglect or default ;

(d)deductions for house-accommodation supplied by the employer ;

(e)deductions for such amenities and services supplied by the employer as the 1* * * 2[Provincial Government] may, by general or special order3, authorise; Explanation.___ The word “services” in this sub-clause does not include the supply of tools and raw materials required for the purposes of employment.

(f)deductions for recovery of advances or for adjustment of over-payments of wages;

(g)deductions of income-tax payable by the employed person;

(h)deductions required to be made by order of a Court or other authority competent to make such order;

(i)deductions for subscriptions to, and for repayment of advances from, any provident fund to which the Provident Funds Act, 1925 (XIX of 1925), applies or any recognised provident fund as defined in section 4[clause (37) of section 2 of the Income Tax Ordinance, 1979 (XXXI of 1979)], or any provident fund approved in this behalf by the 2[Provincial Government], during the continuance of such approval; 5*

(j)deductions for payments to co-operative societies approved by the 2[Provincial Government] or to a scheme of insurance maintained by the 6[Pakistan Post Office] 7[and

(k)deductions, made with the written authorisation of the employed person, in furtherance of any War Savings Scheme, approved by the Provincial Government, for the purchase of securities of the 8[Government of Pakistan], or the Government of the United Kingdom.] 1 The words “G.G in C. or” omitted ibid. 2 Subs. ibid., for “L.G”. 3 For such Order, see Gaz. of P., 1952, Pt. I, Section 1, p.158. 4 Subs by the Federal Laws (Revision and Declaration) Ordinance, 1981 (27 of 1981), s. 3 and Sch, II, for “58 A of the Income Tax Act, 1922”. 5 The word “and” omitted by the Payment of Wages (Amdt.) Ordinance, 1940 (3 of 1940), s. 2 6 Subs. by the Federal Laws (Revision and Declaration) Act, 1951 (26 of 1951), s. 4 and 3rd Sch., for “Indian Post Office”. 7 The word “and” and clause (k) ins. by Ordinance 3 of 1940, s. 2. 8 Subs. by A.O., 1949, for “Government of India”.